There have been a massive lay-off with Microsoft workers in the duration of this year and it isn't stopping. What could be the reason behind this bold move? Could this also imply a possible, in-depth financial problem?
The job reductions are in addition from Microsoft company's early announcement last May 2016 of which 1,850 employees were being laid off; 1,350 workers from their partner Finland and the remaining people were from their sales group.
Microsoft also announced last July 2016 that they will extend its layoff to about 2,850 workers until the end of the fiscal year (June 30, 2017), based on a filing they submitted to the US SEC (Securities and Exchange Commission). Last year, in July, they also cut down 7,400 employees from the phone hardware department. And in February this year, Microsoft continued to lay off dozens of employee connected in the mobile business and largely happened in Finland. A Microsoft spokesperson said that they went a thorough process of cutting down employees with the deepest affection, respect and manners to each individual.
This continuous decision resulted after their phone business crumbles caused by the competition against other major players in the phone business, Apple and Google. Company officials said that this move is necessary in order to restructure the company's sales organization and to adapt to the business needs.
It has been said that after the company's collapsed Windows phone business, Microsoft also will close down its Skype's office in London-based on the report gathered by The Financial Times, which eliminates about 200 to 400 jobs as an outcome of this action. According to Microsoft, this cutting of employees is "to unify some engineering positions, potentially putting at risk a number of globally focused Skype and Yammer roles."
The company's struggle in smartphone industry leads to stopping of phone design and production which affects people mostly from the smartphone hardware department. Now, as of June 30, the current employee of Microsoft Corp. is about 14,000 full-time composing of 63,000 are from the US.